Private Public Partnership

The development of urban roads in the Country has received a major boost following the signing of two road projects under the Public Private Partnership (PPP) Financing Model. The PPP Model has created a regulated mechanism through which the government can tap into private sector to fast track Vision 2030 priority projects. Maturation of the financial close inked on 8^th March 2022 is a major milestone in the Government’s quest to diversify financing of infrastructure development initiatives in the Country.

The two lots covering 80km namely Lot 15 and Lot 18 are intended to transform the urban road network.  Lot 15 covers 45 Kms of urban road network in Nyeri, Murang’a, Kirinyaga, Laikipia, Embu and Tharaka Nithi Counties and will cost Kshs.4.5 Billion.  Lot 18 covers 35 Kms of urban road network in Vihiga, Kakamega, Bungoma, and Busia Counties at a total cost of kshs. 3.5 Billion. The projects will have a 24 months construction period and an eight-year performance-based period and the contractor will receive a prescribed payment.

Negotiations for these projects involved several stakeholders including the Ministry of Transport, Infrastructure, Housing, Urban Development & Public Works (MOTIHUD & PW), the Directorate of Public-Private Partnership (PPP), The National Treasury, Office of the Attorney General, Transaction Advisors, and Financiers among others.

Speaking during the signing ceremony of the Financial Close, Kenya Urban Roads Authority (KURA) Director General Eng. Silas Kinoti indicated that the Authority has put in place measures to ensure that implementation of the projects is expedited to earmarked areas. He thanked all the players involved in ensuring the success of this program and reiterated the Authority’s commitment to fulfilling its contractual roles and obligations to ensure that citizens continue to enjoy a safe and efficient urban road network for sustainable development.

 KURA will also execute the 2nd Nyali Bridge Project through the PPP model. KURA Director General Eng. Silas Kinoti observed that the current Nyali Bridge in Mombasa is heavily congested pushing back traffic snarl-ups to the coastal city itself.

“Residents of Mombasa, both on the Island and the Northern Mainland, are greatly inconvenienced by choking congestion normally experienced on the current bridge. We are determined to change this as Mombasa is a vibrant tourism and commercial hub, which should feature modern infrastructure and high levels of transport efficiency for the benefit of her residents,” Eng. Kinoti said.